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Book keeping is the registering of monetary transactions and is one of the major parts of Accounting in all types of business. Book keeping is generally of two types – Single-entry book keeping and Double-entry book keeping. They are not the parts of the real “book keeping” as we may put it. They are parts of the process of book keeping. Ledger, however, is the ultimate accounting book where all the transactions concerned are jotted down with utmost precision and kept aside as a proof and record of the transactions of the business.
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Types of book keeping
The two main types of Book Keeping are Single entry Book Keeping and Double entry Book Keeping.
A. Single entry Book Keeping-
Single entry Book keeping refers to the entries made in terms of incomes and expenses as debit and credit respectively. Single entry Book keeping is opted for by small scale businessmen where there is not much to record. It is a simply and cheap method of recording transactions.
B. Double entry Book Keeping –
Double entry Book Keeping system refers to the recording of transactions in terms of two ledgers respectively that records the entire financial events taking place. It is a more detailed type of transaction recording and unlike Single entry Book keeping is more expensive and used by large scale businessmen.
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